Bakkt Investors: A Legal Opportunity to Recover Losses from Securities Fraud Allegations

Bakkt Holdings (NASDAQ: BKKT) investors are facing a pivotal moment as the company grapples with allegations of securities fraud, leading to a significant drop in its stock price and a class-action lawsuit. Recent revelations about the company’s financial misstatements and reliance on a single client have sparked legal action, offering affected investors a chance to seek compensation. This article examines the details of the lawsuit, its implications for shareholders, and the steps investors should take to protect their interests.

The Allegations: Misstatements and Overreliance on a Single Client

Central to the lawsuit are three primary allegations against Bakkt and its executives:

1. Misrepresentation of Revenue Stability: The company allegedly overstated the stability and diversity of its crypto services revenue, misleading investors about its financial health.
2. Overreliance on a Single Contract: Bakkt failed to disclose that 74% of its crypto services revenue—and 98% of its total revenue—depended on a single contract with Webull Pay LLC.
3. False Claims About Client Retention: The company falsely asserted it could maintain key client relationships, despite major clients like Bank of America terminating contracts.

These misstatements unraveled on March 17, 2025, when Bakkt disclosed that Webull Pay would end its agreement by June 2025, and Bank of America would terminate its loyalty services contract by April 2025. The revelation caused Bakkt’s stock to plummet 27% the following day, closing at $9.33—a stark contrast to its price of $12.83 on March 17. The projected loss of 73% of revenue further underscored the company’s vulnerability.

Legal Proceedings and Investor Deadlines

Multiple law firms, including Faruqi & Faruqi LLP, Glancy Prongay & Murray LLP, and others, have filed class-action lawsuits on behalf of investors. These suits argue that Bakkt violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making false statements that artificially inflated its stock price during the period from March 25, 2024, to March 17, 2025.

Investors who purchased BKKT shares during this period may qualify to join the lawsuit. A critical deadline looms: June 2, 2025, for those seeking to become lead plaintiffs. Lead plaintiffs oversee litigation and must demonstrate the largest financial stake in the case while representing the interests of the class.

What Investors Should Do Next

Affected investors are urged to contact the law firms listed in the lawsuit filings to explore their options. Even those not seeking lead plaintiff status can join as class members. However, failing to act before the June 2 deadline could forfeit the right to participate in any potential settlement or judgment.

Conclusion: High Stakes and Urgency

The stakes are high for Bakkt investors. With the stock price dropping nearly 27% in a single day and the company’s revenue structure exposed as overly dependent on a single client, the legal battle could determine whether shareholders can recover losses. The projected 73% revenue decline post-disclosure highlights the severity of the misstatements, and the June 2 deadline underscores the urgency for action.

Investors should carefully evaluate their holdings and consult legal counsel to determine the best course. The outcome of this lawsuit may not only impact BKKT’s valuation but also set a precedent for transparency in crypto-related financial disclosures. For those who acted swiftly, this could be a path to mitigating the fallout of what appears to be a significant corporate misstep.

Acting now is critical—waiting risks losing the opportunity to recover losses and influence the case’s direction.